If the incentives you proposed were enacted, there would be no private prisons because any company that tried would go bankrupt. (Unless you mean that the state

If the incentives you proposed were enacted, there would be no private prisons because any company that tried would go bankrupt. (Unless you mean that the state would cover any costs incurred by the private prison, in which case you'd just get prisons run by grifters.) California's state-run prisons have a recidivism rate of 65% within 3 years. A 2% rate of conviction over 50 years is lower than the population of non-convicts. It's not possible for any organization to accomplish that. Also, the company would have to wait 50 years for payout. Even if that payout is with interest, 50 years is beyond the time horizons of most governments, let alone companies.